How do you create a secure mindset for Trading?
Trading can be tough especially if you are trading part-time and you have a job.
You probably notice that you just do not have the mental energy after work and find it difficult to focus.
However, by improving your trading mindset, it will also improve your trading Ability and that will increase motivation and you won’t see trading as something that is draining.
It is difficult to maintain an unemotional stance, especially when making a loss or profit. Staying calm is key. As mentioned in a previous newsletter the market is emotionless, all emotions come from us participants and are based on market or trading psychology. Creating the right mindset takes time and effort but getting yourself into a calm and relaxed mentality before trading can ensure to prevent your emotions from getting in the way of good trading.
A losing trade does not mean anything personal as the market goes up and down regardless of you or your positions. It is how you deal with those losses and profits that count. Do you think about the loss and try and catch up or do you stay calm and continue trading?
If you are still learning don’t take the loss to heart, rather learn from it, understand the mistake you made, and better your trades.
“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t feel that you are very good, the second you do, you are dead.” – Paul Tudor Jones
Ryan Mowatt, Trading Performance Coach